By Zukile Majova
- Enoch Godongwana has refused to resign after two failed attempts to get Parliament to back his national budget.
- The revised plan drops the VAT increase but leaves a R75-billion hole in the government’s finances over three years.
Finance minister Enoch Godongwana says he won’t resign and he’s made it clear it’s up to President Cyril Ramaphosa to decide his future.
After twice failing to get Parliament’s backing for his budget proposals, Godongwana will make a third attempt on 21 May.
The big sticking point has been the Value Added Tax increase he originally proposed. Opposition parties rejected the move outright, and the updated budget now drops the VAT hike altogether.
But it comes at a cost. The National Treasury warned that the revised budget will leave a R75-billion shortfall over the next three years.
The Economic Freedom Fighters (EFF) have demanded that Godongwana step down and pay back the R2.4-million cost of the last failed budget session.
Godongwana defended his actions, saying the VAT increase was within the law.
“That decision does not lie with me; it lies with the president,” he said. “But I am mindful of the fact that the president has been participating in this process, and he understands the nature of the challenges we have been experiencing in dealing with this problem.”
The uMkhonto Wesizwe party suggested it might push for a vote of no confidence. But that option is off the table because the finance minister is appointed by the president, not Parliament.
Godongwana said the issue is worsened by the formation of the government of national unity. Since the ANC lost its majority in the 2024 elections, it now needs to work with nine other parties to get any budget approved.
He believes the original budget would have passed easily if the ANC still held a majority.
In the meantime, national and local governments are being allowed to spend up to 45% of their expected budgets even without Parliamentary approval. This is to make sure civil servants and service providers get paid and that government services continue.
Pictured above: Finance minister Enoch Godongwana.
Image source: File
